Payday Loans Trap

dylan61

Hi, Over 6 months ago during a lean time i took out a £200 loan, like an idiot, from one of these Payday companies. I have now paid back nearly £500 in deferral charges and still owe them £260.

I appreciate that i shouldn't have gotten into this situation, but other than defaulting completely and waiting for a debt collector to come knocking to organise a repayment plan, how else can i get out of this without this £200 loan costing me a grand?

opinions4u

Borrow off family.

Get rid of the PDL.

Don't get yourself in to this position again.

Pay back family.

Spend less in future! Post on Debt-Free Wannabe for help with this.

RichGold

Who is the loan with?
Can you sell anything of value to cover this outstanding amount?
Can you borrow from a reasonable source (parents, a friend) to help you clear this?

Other than that the only option you have really is to stop rolling the loan over, close your bank account and open another with another bank, ensuring that your pay goes into the new account and then offer them a certain amount a month until its paid. This wont look good on your credit file but will stop you paying the earth for the £200 you initially borrowed.

By the way, a debt collector is unlikely to "come knocking", the worst you will find happens is your credit file is trashed and you receive a lot of nasty calls/emails.